What Are the Three Main Types of POS Systems?

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2. POS systems have become particularly important to businesses in today's complex business environment, where fast and efficient methods of conducting business transactions are required. There are three main types of POS systems: fixed or traditional POS systems, mobile POS systems (mPOS), and hosted or cloud-based POS systems. All have their own advantages in different situations depending on the type of business, for shops, cafes and delivery companies. This paper aims to present the main parameters and advantages of each type of POS system.
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1. Traditional POS Systems

These are commonly referred to as legacy POS systems and are typically characterised by hardware components that include a cash drawer, barcode scanner, receipt printer and occasionally a credit card swipe machine.
They are often integrated into physical retail outlets, cafes or other physical businesses, as the actual physical location is typically required for the business to operate.
Data processing and storage are completed on the device or server, and the POS systems are generally less versatile and more structured than new POS systems.

2. Mobile POS Systems (mPOS)

Mobile POS systems exchange data mainly via Bluetooth with devices such as card readers and receipt printers, or via a Wi-Fi connection. 

Mobile POS systems are small or even hand-held and can be run through a smartphone or tablet. These POS systems enable businesses to do their transactions at any place, which makes it suitable for businesses that require mobility (physical and temporal mobility) such as kiosks, mobile selling points like takeaway foods such as food trucks, or any service provider business.
Mobile POS systems are normally connected with the help of Bluetooth or Wi-Fi to peripheral equipment, such as card readers or receipt printers, etc.
Mobile POS systems can be centralized and may include synchronizable real-time data to increase usability compared to ordinary systems.

3. Cloud-based POS Systems

A unique feature of cloud-based POS systems is that data is hosted in a cloud rather than on local hosts and servers, making it easily accessible from any location.
Such cloud-based POS systems are very flexible and have additional components that include inventory tracking, customer relationship management and analytics.
Cloud-based POS systems also often have a lower initial cost as they rely on subscription billing and can be modified or maintained online.
Each has its advantages and disadvantages, depending on the size of the business, its mobility requirements and whether it wants to store and process data and perform transactions itself.

Therefore, the selection of the right type of POS systems is very important in enhancing business performance and customer satisfaction. In a similar way, traditional POS systems, mobile POS systems, and cloud-based POS systems have different advantages that depend on the characteristics of the business in question. Knowing the characteristics and benefits of the type makes it possible not only to make the right choice guided by the specifics of the business activity but also to guarantee an effective and efficient transaction.